MGMT FFAC Chapter 2: Exercise These items are taken from the accounting records of Entity A for 2020. CJLAccounts payable CIA Accounts receivable -ppsE Accumulated depreciation-equipment CJA Advertising expense CAA Cash SE Common stock ant A Copyright UA Depreciation expense Dividends 10,000 11,000 38,000 21,000 4,000 90,000 4,000 12,000 15,000 210,000 6,000 3,000 70,000 6,000 17,000 12,000 34,000 3,000 130,000 4,000 6,000 Equipment Ford Motor Co. stock (long-term investment) Insurance expense LTL Notes payable (due 2028) Prepaid insurance CIA Rent expense SE Retained earnings (beginning) cIA Salaries and wages expense Salaries and wages payable C/L Service revenue CIA Supplies CIA Supplies expense B-RI 2u-Exp NI Instructions In good form (include headings), prepare an income statement, a retained earnings statement, and a classified balance sheet as of December 31, 2020. Then compute the current ratio and the debt-to-total-assets ratios identifying which is a measure of liquidity and which is a measure of solvency. subts End